Here, a giant company is leaving Romania! Shock to the economy. Official

The elders who run this Dutch insurance company have put their Eastern European business up for sale in a desperate attempt to raise money to cope with the negative effects of the coronavirus pandemic. Operations in Romania will also be abandoned.

With this shift in proportions, the heavyweights leading Aegon are looking to increase profits in major markets. The information was provided by sources from the Reuters news agency, quoted by Agerpres.

Aegon-JPMorgan collaboration

The choice of the Dutch for this large-scale transaction in the profile market was the American investment bank JPMorgan. Aegon works with JPMorgan and has had preliminary discussions with companies in the sector.

The sale of the subsidiary was discussed, mainly focused on Hungary, but also quite active in Poland, Romania and Turkey. In figures, at a first calculation, it is estimated that the operation can be valued at around 650 million euros (no – 767.85 million dollars).

In the next auction, representatives of the insurance companies NN Group (Netherlands) and KBC (Belgium) have expressed their interest in studying the submission of bids for these assets. Even the famous German group Allianz has expressed interest in conquering the markets vacated by Aegon.

He didn’t want the press to know

As with large transactions between financial giants, secrecy is well guarded. However, this time around, information about Aegon’s intentions somehow leaked to the press.

In this context, it is hardly surprising why the representatives of Aegon, Allianz, NN Group and KBC did not want to comment on the information in any way. It’s understandable, as the stakes are huge and any detail can be used to reduce the value of this transaction.

“Aegon offers life and general insurance in Hungary, where it has been present since 1992, when it acquired the former state insurance company Állami Biztosító and then used its division as a platform for new acquisitions in Central and Eastern Europe.

Aegon CEO Lard Friese announced in August that he would be reviewing the company’s operations in some of the 20 markets it operates in as part of its capital conservation efforts.

In 2018, the Dutch insurance company sold its assets in the Czech Republic and Slovakia to NN Group for 155 million euros “, Agerpres shows.

photo explanation: Aegon headquarters (The Hague).